by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is an Economic Recession? An economic recession is an extended period of recession, a period in which the productivity of a nation falls. Related Topics What is Government Spending? Autonomous Spending Autonomous Consumption Fiscal Policy Expansionary Fiscal...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Potential GDP? An AS curve’s slope changes from nearly flat at its far left to nearly vertical at its far right. At the far left of the aggregate supply curve, the level of output in the economy is far below potential GDP, which we define as the amount...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Neoclassical Analysis?Related Topics Neoclassical Economics Say’s Law Neoclassical Analysis Supply Side Theory Laffer Curve Keynesian Economics Keynes’ Law Keynesian Analysis Demand Side Theory Market Forces Aggregate Demand / Aggregate Supply...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Keynes’ Law?Keynes’ law:, was proposed by John Maynard Keynes, and states “Demand creates its own supply.” The alternative to Say’s law, which states that Supply creates Demand. Keynes law is a simplification of principles espoused by Keynes in his...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Keynesian Analysis?Keynesian economics focuses on explaining why recessions and depressions occur and offering a policy prescription for minimizing their effects. The Keynesian view of recession is based on two key building blocks. First, aggregate demand is...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are Market Forces?Market forces are the grouping of factors that affect the: demand for use or consumption of a good supply or availability of goods by firms price of goods available for purchase. Related Topics Supply-Side Economics Say’s Law Laffer...
